Quality Systems, Inc. (QSII) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $4.42 million, or $ 0.07 a share in the quarter, against a net loss of $16.32 million, or $0.27 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $12.70 million, or $0.21 a share compared with $11.54 million or $0.19 a share, a year ago.
Revenue during the quarter grew 3.50 percent to $132.38 million from $127.91 million in the previous year period. Gross margin for the quarter expanded 405 basis points over the previous year period to 57.72 percent. Operating margin for the quarter period stood at positive 5.03 percent as compared to a negative 17.67 percent for the previous year period.
Operating income for the quarter was $6.66 million, compared with an operating loss of $22.60 million in the previous year period.
"We delivered another solid performance this quarter resulting in full year achievements that confirms our confidence in our organizational capabilities to deliver financial results. In addition, we continued to execute on our strategic agenda, which is driving satisfaction in our clients and confidence in our employees. As we look ahead, we plan to accelerate investments in our R&D and commercial capacities this fiscal year to enhance our market position and capitalize on opportunities to drive near term bookings and longer term revenue growth," commented Rusty Frantz, president and chief executive officer of Quality Systems, Inc.
For fiscal year 2018, Quality Systems, Inc. forecasts revenue to be in the range of $512 million to $530 million. The company expects diluted earnings per share to be in the range of $0.66 to $0.74 on adjusted basis.
Working capital drops significantly
Quality Systems, Inc. has witnessed a decline in the working capital over the last year. It stood at $18.11 million as at Mar. 31, 2017, down 60.58 percent or $27.82 million from $45.93 million on Mar. 31, 2016. Current ratio was at 1.14 as on Mar. 31, 2017, down from 1.33 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 26 days for the quarter from 37 days for the last year period. Days sales outstanding went down to 29 days for the quarter compared with 45 days for the same period last year.
At the same time, days payable outstanding went down to 4 days for the quarter from 9 for the same period last year.
Debt comes down significantly
Quality Systems, Inc. has recorded a decline in total debt over the last one year. It stood at $15 million as on Mar. 31, 2017, down 85.71 percent or $90 million from $105 million on Mar. 31, 2016. Quality Systems has recorded a decline in long-term debt over the last one year. It stood at $15 million as on Mar. 31, 2017, down 85.71 percent or $90 million from $105 million on Mar. 31, 2016. Total debt was 3.17 percent of total assets as on Mar. 31, 2017, compared with 19.78 percent on Mar. 31, 2016. Debt to equity ratio was at 0.05 as on Mar. 31, 2017, down from 0.39 as on Mar. 31, 2016.
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